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Traditionally, procurement organizations have been advised to consolidate their supplier base (with the handful of suppliers with the greatest percentage of purchases), negotiate strong contractual discounts and encourage their employees to purchase from these preferred vendors at the prenegotiated pricing.

In reality, supply base rationalization results in many inefficiencies. In fact, such an approach can be the enemy of effective indirect spend management. To understand why and select the appropriate strategy for your organization, this Spend Matters white paper explores the top five reasons why rationalizing the supply base may lead to missed savings, weaker supplier relationships and more.